This archive report was first published on 15 July 2020.
Published on July 15, 2020, New Kenya Cooperative Creameries (New KCC) has halted milk supplies to Tuskys due to defaulted payments worth millions of shillings.
The retailer, Tuskys, has been struggling with empty shelves and a struggling business, despite its claims that COVID-19 has adversely affected its operations.
According to New KCC managing director Nixon Sigey, the milk processor has stopped supplies after the company exceeded its credit payment period of 60 days.
"We are at the moment in discussion with the firm to agree the way forward after we stopped supplies of milk to the retailer," said Mr Sigey.
It is estimated that Tuskys owes suppliers Ksh1.2 billion, with manufacturers calling on the government to intervene to prevent the situation from escalating.
The Competition Authority of Kenya (CAK) has already ordered the retailer not to pay its directors a dime without its approval, as part of efforts to protect the interests of suppliers.
